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Thread: credit score

  1. #11
    Senior Member willingtocope's Avatar
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    Quote Originally Posted by jpri View Post
    I didnt take the time to read everyone elses comments.
    Take the time...

    Credit Bureaus are not in business to help the consumer. Their business is to help creditors identify who they will make money on.

    The debt to limit ratio is of less importance than the "limit" part. An unsecured credit limit (credit cards, lines of credit, etc) in the $3000 - $10,000 range is actually likely to get you more credit card offers if you have fairly high balances. Your sucker score may be in the 600 range, but the other credit card companies will want a piece of the action.

    Yes...I know...that's not what the commonly accepted explanation says, but, its true.

  2. #12
    Senior Member rdf's Avatar
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    I got zapped because I don't have any open lines of credit. I pay off my CCs (I have two) balances each month, but I rarely use my CCs anymore, for anything. I pay cash.

    I had a FICO score of 810, but because of not taking advantage of the credit available to me, not having any open lines of credit after I sold my house last year, it got dropped to 798. That was the explanation I received.
    Quote Originally Posted by willingtocope View Post
    Take the time...

    Credit Bureaus are not in business to help the consumer. Their business is to help creditors identify who they will make money on.

    The debt to limit ratio is of less importance than the "limit" part. An unsecured credit limit (credit cards, lines of credit, etc) in the $3000 - $10,000 range is actually likely to get you more credit card offers if you have fairly high balances. Your sucker score may be in the 600 range, but the other credit card companies will want a piece of the action.

    Yes...I know...that's not what the commonly accepted explanation says, but, its true.
    Please donate a dollar a day at http://justadollarplease.org.
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  3. #13
    Senior Member willingtocope's Avatar
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    A sucker score at 798 will get you PRIME credit cards...AMEX, BofA, etc....but if you've already got 2, you're set.

    Who told you, you got "zapped"?

  4. #14
    Senior Member rdf's Avatar
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    Told myself. I know the drop wasn't very far, but it seemed odd that they dropped my score 12 points for non-use of credit. Learn every day I guess.
    Quote Originally Posted by willingtocope View Post
    A sucker score at 798 will get you PRIME credit cards...AMEX, BofA, etc....but if you've already got 2, you're set.

    Who told you, you got "zapped"?
    Please donate a dollar a day at http://justadollarplease.org.
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  5. #15
    Senior Member willingtocope's Avatar
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    Anything over 750 is considered excellent...and, the algorithms have a +/- error rate of about 3%. although FICO is working all the time to improve on that.

  6. #16
    Senior Member rdf's Avatar
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    Thanks for the info wtc, appreciate it.
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  7. #17
    Quote Originally Posted by willingtocope View Post
    So...bottom line. Close ANY cards that charge you a yearly fee. Close ANY store cards (these days, they're usually just big bank cards with the store's name on it). Keep one or two cards with limits in the $5,000 range for emercencies, but DO NOT carry a balance unless you absolutely have to.

    Manage your debt...not your credit score.
    I think giving blanket advice without any regard for one's financial (and credit) goals is irresponsible.
    Daniel

  8. #18
    Quote Originally Posted by rdf View Post
    Told myself. I know the drop wasn't very far, but it seemed odd that they dropped my score 12 points for non-use of credit. Learn every day I guess.
    Well, if you don't use credit, how would credit granters know whether you'll pay it back or not? A credit score measures the likelihood you'll make good on your obligations.
    Daniel

  9. #19
    Senior Member willingtocope's Avatar
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    Quote Originally Posted by dan_nc View Post
    I think giving blanket advice without any regard for one's financial (and credit) goals is irresponsible.
    I, too, beleive that giving blanket advice is irresponsible...however, if I could legally claim to have had anything to do with creating the systems that relate to credit reporting, I would feel an obligation to pass along what I know.

    Well, if you don't use credit, how would credit granters know whether you'll pay it back or not? A credit score measures the likelihood you'll make good on your obligations.
    And, there is another misconception. The credit grantors are not interested in whether or not they'll get their money back...they're interested in "return on investment". They'll gladly let you keep the $1,000 they originally loaned to you, as long as you pay them 10-24% you agreed to give them every year. That is what the credit scoring system measures...what is the likelyhood that you'll get suckered into the minimum payment trap and give them a cash flow that will extend for 23 years, and give them back their original $1,000 many times over.

  10. #20
    Senior Member rdf's Avatar
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    Past history. Plus although I use CCs sparingly, I still use them on occasion. The credit bureaus have plenty of info to judge my worthiness.
    Quote Originally Posted by dan_nc View Post
    Well, if you don't use credit, how would credit granters know whether you'll pay it back or not? A credit score measures the likelihood you'll make good on your obligations.
    Please donate a dollar a day at http://justadollarplease.org.
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